The Public Investment Fund (PIF) today announced the launch of the Saudi Coffee Company. The company is established to enable Saudi Arabia’s coffee bean to be a global product in the future.
It is expected to play a vital role in developing sustainable coffee production in the southern Jazan region, home to the world-famous Coffea Arabica.
The launch of the Saudi Coffee Company aligns with PIF’s strategy, which focuses on developing and enabling 13 promising sectors, including food and agriculture, as part of broader efforts to diversify sources of income for the local economy.
In partnership with the private sector, the Saudi Coffee Company’s primary goal is to ensure that the national coffee industry is enabled along its entire value chain, from bean to cup.
The company is expected to achieve sustainability across the production, distribution, and marketing aspects of the coffee supply chain, create new jobs, and enable Saudi Arabia to export coffee beans to the global markets.
The coffee market in Saudi Arabia has grown considerably in recent years, and domestic market statistics demonstrate the attractive opportunity presented by the coffee sector.
Data shows that coffee consumption in Saudi Arabia grew by approximately 4% a year between 2016 and 2021 and is forecast to increase by a further 5% per annum up to 2026, reaching an expected annual consumption of 28,700 tons.
Over the next ten years, the company aims to boost the country’s production from 300 tons per year to 2,500 tons per year by investing SAR 1.2 billion ($320 million) in national coffee industry.
According to statistics, the national production of the Saudi Khawlani coffee beans comes from the mountainous regions of Jazan, Al Baha, and Aseer.
Across the three regions, there are more than 2,500 coffee plantations with a combined total of around 400,000 coffee trees.
The company would also localize knowledge and introduce the latest technologies across the planting, harvesting, roasting, and marketing sides of the coffee industry in Saudi Arabia.